Wednesday, May 11, 2016

#MinimumWage Debate, A Discussion About Communistic Price Fixing

As confidence shifts from the public to private sector over next few decades, the public (majority) scarred by economic mismanagement for generations with increasingly disastrous consequences will transition from "let the government handle it" to "I wouldn't let them run my kid's lemonade stand."

The value of unskilled labor, a pool that includes foreign workers by the increasing presence of Internet sales and commerce, will be determined by supply and demand. If the price of labor is fixed or pegged above or below its fair market value will produce an abundance and shortage of labor, respectively. In other words, business will adapt by either laying off workers or replacing them with automation if the price is too high, or adding workers or reducing expensive automation if the price is too low. While most Americans would laugh at communist Russia for 'price fixing' markets, they can't see similar foolishness in the national minimum wage debate.

Headline: The percentage of minimum wage workers has actually decreased

The debate surrounding the impact of increasing minimum wages has intensified as cities, states and individual companies look to boost salaries higher than the federal standard. Deutsche Bank’s Torsten Slok put the discussion in context with some key charts from the Bureau of Labor Statistics.

The current federal minimum wage stands at $7.25 is no longer relevant in certain cities, states and at certain companies.



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